C. Costs, Benefits, and Effectiveness (Continued)
The average amount of WS award is strongly related to family income.
In FY 1984, for example, participants with family incomes of $40,000+
received larger awards than those from families with less income. The
principal reason for this is that many students from higher income
families attend more expensive colleges. Many of these students receive
WS awards that are a small percentage of total cost. The dollar amount
of the award may be larger, however, due to higher cost of attendance.
Program Effectiveness: Program effectiveness can be measured by the
extent to which allotment of funds to States corresponds with actual
student need as indicated by standard need analysis systems. Although
the State allotment formula is complex, comparison of the average award
per full-time student with one measure of student need (the Pell eligi-
bility index) results in a very low (.10) correlation (see E.4 below).
Student aid awards have covered a smaller percentage of total cost during
recent years, principally because of rapidly rising tuition. In FY 1984,
for example, the average award met 14.4 percent of total cost for -first-
tine, full-time freshmen. In FY 1980, the average award met 16.3 percent
of cost. Consistent with the pattern of previous years, the percentage
of total cost shows little variation across family income categories.
For example, an average award met exactly 14.3 percent of total cost for
students with family incomes of less than $10,000 and also for those 1n
the $30,000-$39,000 group.
0. Plans for Program Improvement and Legislative Recommendations
The Work-Study Program is considered an essential component of the Ad-
ministration's package of student financial aid. An increase in funding
had been proposed in the president's budget for FY 1985 to assure that
more students have adequate work opportunities to provide for their
self-help (work/loan) commitment in meeting educational costs.
The program will encourage use of funds to support tutoring for adult ,
literacy and employment at eligible day-care centers. The program will i
also encourage the relationship between academic programs and Work-Study
experiences through the Cooperative Education Program (CFDA No. 84.055).
E. Supporting Studies and Analyses Cited in Section C Above
1. Program Files, Office of Postsecondary Education, U.S. Department of
Education, Washington, D.C., 1984.
2. The American Council on Education, "Student Financial Aid for Full
Time Undergraduates11 HEP Survey No. 60, Washington, O.C., 1983
3. "The Cooperative Institutional Research Program (CIRP)," University
of California at Los Angeles, California, 1984.
4. U.S. Department of Education, MA Review of the Distribution Formula
for the College Based Programs,11 unpublished study, 1983, Office of
Student Financial Assistance, U.S. Department of Education. to institutions under both \